Florida & Nationwide Currently Not Collectible Status Attorney
Filing your taxes, even when you are not able to pay them, is a smart idea. That being said, if you agree with the Internal Revenue Service (IRS) that you owe it money, but you cannot pay, the IRS may place your account in “CNC,” or Currently Not Collectible, status. For those who are unable to meet their tax burden at the time being, CNC can be a financial lifesaver. The attorneys at the law firm of Ronald Cutler, P.A. can help you to understand CNC status, how long it lasts for, how to request it, and more. Contact us today at 386-490-9949 for a free consultation.
Understanding Currently Not Collectible Status
Essentially, CNC status provides you with protection from collection and other actions against your assets (like liens, levies, seizures, wage garnishment, etc.). However, CNC does not mean that you do not have to ever pay the money you owe the IRS, or that the IRS will not assess penalties (like late fees) against you during the time you remain in CNC.
Section 5.16.1.2. of IRS Code explains the different situations in which an account may be moved to CNC status. For example, CNC status may be granted when:
- Collection of taxes would create “a hardship for taxpayers” that leaves them unable to meet basic cost of living expenses;
- When an individual dies and there is no collection potential from their estate;
- When a taxpayer (or their assets) cannot be located; or
- When a taxpayer cannot be contacted, even though location is known.
The above list is not inclusive – refer to the section of code cited for more information.
How to Get CNC Status
As stated above, CNC status can be an essential part of financial health for those who have a tax liability, but are unable to pay it. An attorney can help to guide you through the steps of applying for CNC status, which include proving that you do not have any assets that would provide you with the ability to pay your tax burden. To prove this, you must fill out and file a number of forms, including Form 433-A. This is a highly comprehensive form that should be filled out with a knowledgeable tax attorney. You will also need to include a copy of your tax return, proof of living expenses (including healthcare and transportation), and more.
Our Florida Tax Attorneys Are Ready to Help
We serve clients nationwide, but often work with clients in Daytona Beach, Orlando, Jacksonville, Tampa and Miami. When you call us to schedule your free case consultation, we will do everything we can to make sure that your tax issue is fully explained to you and that you understand your options. From there, we will work hard on your behalf to procure the best the best resolution possible.
To learn more about CNC status, contact the office of Ronald Cutler, P.A. now at 386-490-9949. We are ready to work for you!